Glossary entry

Dynamic currency conversion

Dynamic currency conversion is a service at card terminals, ATMs and online checkouts that charges you in your home currency instead of the local one. The merchant, ATM operator or their payment provider sets the rate, and it can be less favorable than the rate your card network or issuer would apply if you paid in yen. The prompt may present the dollar total as the neutral choice. In most cases, choosing yen is the safer option. See also: DCC, foreign transaction fee, and the guide Avoiding Currency Conversion Traps.